In the recent trend of bidding in competitive auctions in India several factors have brought solar power prices in India to the edge of grid parity.These include sharp fall in panel prices, accompanied by aggressive policy decisions and falling lending rates.
A total of 6,781 MW solar power capacity has been allocated through competitive auctions for feed-in tariffs in India between December 2010 and September 2015.
- 2010-under NSM- bidding between Rs 10.95/kWh and Rs 12.76/kWh- 150 MW auctioned with a weighted average bid of Rs 12.16/kWh.
- 2011 – a sharp decline in bids-350 MW was auctioned under the National Solar Mission policy. The range of the bids Rs 7.49/kWh-Rs 9.39/kWh with a weighted average bid of Rs 8.79/kWh.
- 2012-235 MW capacity auctioned-with weighted average bids ranging between Rs 8.05/kWh and Rs 8.36/kWh. The lowest bid in these auctions was Rs 7.00/kWh.
- 2013- 6 auctions -allocating 981 MW capacity-bids of levels Rs 7.00/kWh to as low as Rs 5.50/kWh. Some states (higher than Rs 8.00/kWh)
- 2014 saw fewer but larger auctions, – 1,600 MW capacity auctioned -Weighted average bids remained stable at just under Rs 7.00/kWh.
- 2015-8 auctions up to September- 3,465 MW – Rs 6.00/kWh rate. The lowest bid of Rs 5.05/kWh was placed in the 300 MW auction under Madhya Pradesh solar power policy. Punjab, which had seen comparatively higher bids between June 2013 and early 2015 also saw sharp correction in the 500 MW auction held in September 2015. Bids in Punjab had ranged between Rs 6.88/kWh and Rs 8.75/kWh in the 3 auctions held between 2013 and early 2015 but the September 2015 auction saw weighted average bids falling to Rs 5.65/kWh.